Place water, canola oil, flour, 1/4 cup sugar, salt, and yeast in a bread machine. Turn on to manual cycle and remove when the dough is ready for shaping, following manufacturer's directions.
Spray a Bundt cake pan with canola oil; set aside. In a bowl, combine 2/3 cup sugar and cinnamon.
Shape dough into 36 1-1/2-inch balls. Dip balls in melted butter, roll in cinnamon sugar, and place in Bundt pan as evenly as possible. Cover pan with a towel; let rise in a warm place for 45 minutes.
Preheat oven to 375 degrees F. Bake for 20 to 30 minutes, until golden. Cool in pan for 1 minute and invert onto a wire rack. Pull apart to eat.